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(Image courtesy of Otis Energy)

Australian Otis Energy announced it has not yet received government approval to purchase a stake of Block 7 in Yemen.

During the second quarter of 2013 Otis entered into an agreement with Mitsui E&P Middle East to buy an 8.5 percent working interest (10 percent paying interest) in Block 7 in the Republic of Yemen.

Completion of the acquisition is subject to approval from the Yemen Government which has not yet been granted.

Under the terms of the agreement the longstop date for completion of the transaction was April 24.

The parties now have a period of 20 business days to seek to agree an alternate means of affecting the transaction.